Homeowners Tax Relief Grant
It appears that state revenues for the year will be as much as one billion dollars below projections. Times are hard and we are all struggling and wondering when will it end. So the State of Georgia, with the responsibility to the Governor must find a way to cut expenses. A few years back the state created a program where it would collect taxes from us and redistribute them to local governments (cities and counties) in the form of a Homeowners Tax Relief Grant(HTRG). Great idea. We as homeowners get some relief from property taxes, which incidentally is the major source of revenue (school’s and city) for the City of Decatur. Now how do get this relief? Local governments issue a tax bill with an item shown as HTRG which reduces our tax bills (about $251.96 for me). Most governments in Georgia have already issued tax bills and listed the credits. Local governments get this money from the state by sending a bill later in the year. Now the state says, “Whoops, no money!” so we as a local government will not receive these funds. How much is it for Decatur? General Fund $370,000, Capital Fund $36,000, DDA Fund $14,000 and the school fund $683,000. For the city of Decatur a total of $1,103,000 (estimated for 2008). Now we have already made and approved our budgets so we how do we make up this lost revenue? For Decatur, we have a second bill yet to issue so we remove the credit on our 2nd bill and show it as an increase of (in my case) $251.96, or we have keep the credit and cut services. So, the state makes a choice to cut expenses for lost revenue. Oh no, wait, it was not the state that had to cut services or increase taxes, it was your local government. Pretty easy choice for the governor; just take it from someone else.
Last year we fought hard against a proposal for the state to collect a sales tax and redistribute it to us for property tax with a promise that they would always try hard to keep our revenues at the same level. And we said, “We don’t trust you,” and they wondered why!!!! Some relief program: it’s dropped at the first sign of trouble because it is easy for them to do.
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August 13th, 2008 at 1:34 pm
[…] mayor discusses it all (and tells you how much more he’ll be paying this year) over on his blog. Possibly related posts: (automatically generated)States with ecomonic downturns are cutting […]
August 18th, 2008 at 1:53 am
Sandra Kellog wrote about it lately but i think what you wrote is much better.